Cable bounced sharply this week, which has been expected as we saw pair in final stages of a corrective decline in wave B. A reversal to 1.2420 is strong, thus probably an impulse that will take this pair much higher in days ahead, especially after wave two pullback which can be nice set-back to join the bullish rise for a big wave C up, while market is above 1.1984 swing low.
Hello Gregor, Decline from end of June 2014 is not complete. Currently correcting October 2016 low. Price clearly rejected from decisively entering the channel above 1.242 as you would silence the loud bully with the snow shovel. Regardless of the outcome of the Parlament vote - Brexit means Brexit. CBE contributions to ECB have been suportive to/of the £. It is highly likely that will end. Demand for UK guilds created by UK deficit spending have dried up and it become too obvious that the CBE is the purchaser of last resort. Should the equity markets continue to sell off, demand for £ is miniscule relative to demand for $. CBE has turned attention to EM currencies and will continue to follow suit. Strengthening London Sharia financing along with the London yuan exchanges confirms that. The recent price action jolts is a distraction. Sleazy, devious and perfidious Albion £ took advantage of the neighborhood and is afraid of being slapped senseless. CBE has run out of morons abroad and is breeding them domestically instead.
musician
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Let me tell you my view: I think from Dec 6th to Jan 15th we saw 5 clean waves down, then a 50% retracement on the speech of May. That looks like a counter-trend corrective phase - a strong one due to "sell the fact" on T. May. Now, we are free to dive. What is keeping up cable is fear of "the USD must get weaker" by D. Trump on Jan 20th. If that wont come (strongly), we will go to 1.18 within weaks/days. UK is out of the Union and looks vulnerable - will be hit even stronger once the negotiations turn nasty and they will.